Brad Hess

Text Box

2016-CAPCC

KOREA DIRECT – MDCP PROPOSAL

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2. Project Narrative File (page limit 20)

A. Executive Summary – attached

B. Background

1) Current competitive position of the U.S. Industry, including market potential for the industry’s

products and services;

Manufacturing is the backbone of America and California in the nation’s premier manufacturing state. In 2015,

California manufacturers employed roughly 1,278,400 according to the National Association of Manufacturers. 1 As

the state’s third largest manufacturing industrial sector, the processed food and beverage industry generates a

significant direct and indirect socio-economic impact across communities that are home to some aspect of the food

supply chain or “food system,” as well as all levels of government.

This impact is even greater in the mainly rural jurisdictions of California, home to much of California’s food system

industrial production, processing and distribution base. According to the California League of Food Processors

(CLFP) study “Food and beverage processing is a key driver of county and metropolitan area economies in many

parts of California, most notably its Central Valley, where the sector contributes nearly $20 billion in value added

to the regional economy and nearly 205,000 jobs. The largest relative impact of food and beverage processing is in

Colusa County, where the sector is responsible for nearly half (48%) of all jobs. Food and beverage processing is

responsible for 20% or more of all jobs in Kings, Merced, and Stanislaus Counties. The comparable story can be

told for many metropolitan areas in California, where food and beverage processing is directly or indirectly

responsible for a third or more of total employment in cities such as Williams, Corning, and Turlock. Food and

beverage processing accounts for 28% of total employment in Tulare, and, even in the large and diversified city of

Fresno, food and beverage processing is responsible for 14% of total employment—nearly 27,000 jobs.”

Coincidentally these are also the counties with the highest unemployment rates2, for much of the processing and

distribution is located in close proximity to the seasonal nature of agricultural production, which in California

accounts for an additional 348,900 employees.3 Further stress has been placed on this value-chain and the

communities due to California’s four-year historic drought which has resulted in a 6.6 million acre-feet reduction in

surface water for growers and processors.4

1 National Association of Manufacturers, http://www.nam.org/Data-and-Reports/State-Manufacturing-Data/ 2 http://www.labormarketinfo.edd.ca.gov/LMID/Geographic_Information_Systems_Maps.html 3 Employment Development Department: California Agriculture http://www.calmis.ca.gov/file/agric/2013-4cab.pdf -accessed July 29, 2014 4 Economic Analysis of the 2014 Drought for California Agriculture http://www.circleofblue.org/waternews/wpcontent/uploads/2014/07/Economic_Impact_of_the_2014_California_Water_Drought_0.pdf -accessed July 16, 2014

$25.2 billion in direct value-added

$56.7 billion in additional value-added through indirect and induced impacts

$82 billion of total value added

198,000 direct full- and part-time jobs

562,000 jobs through indirect and induced activity

760,000 total jobs

$220 billion in total value output

$10.5 billion in Federal tax revenue

$8.2 billion in State/local tax revenue Jan 2015, The Economic Impact of Food and Beverage Processing in California and Its Cities and

Counties, Richard J. Sexton, Josué Medellín -Azuara, and Tina L. Saitone, California League of Food

processors

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Despite these threats to the industry, California’s food and beverage products have never been as popular as they

are today. “…Asians are interested in all things Californian. And their diets include grocery bags full of California

products, from walnuts to wine to cheese and cashew nuts.” According to a CNN opinion piece written by Mark L.

Clifford.5 California is one of only five agricultural regions in the world that has a Mediterranean growing climate

(lands around the Mediterranean Sea, Western/Southern Australia, southwestern South Africa, sections of Central

Asia, an in Central Chile), producing over 400 commodities, more than any other state in the nation.6 It are these

commodities that are then processed, packaged and shipped both domestically and around the world. According to

a May 2014 International Agricultural Trade Report, from the U.S. Department of Agriculture’s Foreign Agricultural

Service … Exports of high-value, processed food products* have been a significant contributor to the strongest five-

year period for agricultural exports in U.S. history. Processed food exports climbed to more than $45 billion in 2013,

up from $29 billion in 2009. Over the past five years, exports in the 20 processed food categories monitored by FAS

grew by 61 percent.7

8 United States Department of Agriculture

Global food demand and consumption is on the rise with American, and especially California producers, positioned

to take advantage of global trends, especially those in the Asian and the Pacific market.

Economic power is continuing to shift south and east, driving new pattern of trade and investment, according to

EY’s Megatends 2015: Making Sense of a World in Motion, “The growing middle-class will continue to drive the

emergence of lucrative new markets. … Two/thirds of the global middle-class will be Asia-Pacific residents by 2030,

up from just one-third in 2009.”9

According to “Euromonitor, a market research firm, who estimates that the retail value of packaged food (a proxy

category for high-value food products) will increase by $316 billion over the next five years to $2.6 trillion. One

challenge for U.S. exporters is to translate this expansion in food retail into export opportunities. Another

challenge is steep competition from other principal suppliers.” 10 Yet the value proposition is assured for

producers as the U.S. Chamber of Commerce notes “Markets Outside our borders represent: 80% of the world’s

purchasing power; 92% of the world’s economic growth; and a further 95% of the world’s consumers.”11

Californian firms are poised to leverage the following megatrends:

5 http://www.cnn.com/2015/05/11/opinions/clifford-california-asia-water-solutions/ 6 California Department of Food and Agriculture, “California Agricultural Statistics Review: 2012-2013,”- accessed July 15, 2014 http://www.cdfa.ca.gov/Statistics/PDFs/2013/FinalDraft2012-2013.pdf 7 http://www.fas.usda.gov/data/us-processed-food-exports-growth-outlook 8 http://www.fas.usda.gov/data/us-processed-food-exports-growth-outlook 9 http://www.ey.com/Publication/vwLUAssets/ey-megatrends-report-2015/$FILE/ey-megatrends-report-2015.pdf 10 http://www.fas.usda.gov/data/us-processed-food-exports-growth-outlook 11 https://www.uschamber.com/ad/95-worlds-consumers-live-outside-united-states

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Global Trade Liberalization Agreement: KORUS and TPP

Global brand recognition – CALIFORNIA

Middle class income growth and urbanization

Highest Growth Market are now in Asia and the Pacific region

Strong consumer attitudes and beliefs including: nutrition; food safety; flavor; and cost of food in their

purchasing decisions

Power of the Internet of Things:

o Social media phenomenon allows for consumer research and influencing of behavioral

purchasing decisions

o Online Food and Beverage cross-border ecommerce platforms are on the rise

2) Local and third-country competitors in the target markets;

Food security is an important issue for Koreans. As the country is unable to produce enough food to support

themselves, Korea’s reliance on imports is set to grow. This domestic consumer market reality is coupled with

changing dietary patterns driven by the increasingly wealthier consumer who’s developing a palate for higher-end

food and beverages along with increasingly healthier life-style choices, ensuring Korea will remain a competitive

market for international food and beverage export for some time to come. 12

As Korean consumers move up the adoption scale, multilateral regulatory conditions are also forcing changes in

the marketplace. These externalities are wide ranging, from the Korea Government’s conclusion of 8 Free Trade

Agreements with 47 countries representing diverse national export competitors (the European Union, ASEAN, and

the United States)13 to that of the Korean Government’s forward leaning and externally focused economic

12 USDA, Economic Research Services website, http://www.ers.usda.gov/topics/international-markets-trade/countries-regions/south-

korea/trade.aspx

13 FOODPOLIS, Korean National Food Cluster, leaflet Pg. 5 http://foodpolis.kr/download/brochure/foodpolis_leaflet(eng)m2.pdf

Food imports showed a high growth rate (CAGR 12.9%), reaching $25 billion in 2008

US: $6.5 billion (27%); China: $3.6 billion (15%); Australia: $2 billion (8%)

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development initiatives (Hallyu14 and FOODPOLIS15) that are all converging to increase the importance of the

Korean food and beverage agri-foods industrial ecosystem to the world.

16 Korea international trade association 17 Korea international trade association

The future of this market is bright as the United States has concluded a free trade agreement (KORUS) that is now

full implemented, with California especially well-positioned to gain from this convergence of trends. Despite

competition from China and Australia, California can draw on its strong international brand as a clean, safe, and

organic food producer with high safety standards to supply the Korean, and by extension other Northeast Asian

markets, with premium products. More than most other national food and beverage exporters, California has a

competitive advantage in that it has the largest Korean-American expatriate concentration in all of the United

States. 18 The Brookings Institute’s Hamilton Project has ten economic facts about immigrant economic

development of which #9 Immigrants Start New Businesses And File Patents At Higher Rates Than U.S.-Born

Citizens is borne out by the Korean-American entrepreneurial community in California. It’s this “community of

affinity” who actively maintains their links with the home market, establishing businesses with bilateral ties that

are surging forward in the development of a socio-economic channel for California products in Korea and beyond.

3) Target market economic conditions and the likelihood that potential buyers will purchase U.S. goods

or services to be offered;

14 John Walsh, Hallyu as a Government Construct: The Korean Wave in the Context of Economic and Social Development

http://link.springer.com/chapter/10.1057%2F9781137350282_2 15 FOODPOLIS, Korean National Food Cluster website, http://eng.foodpolis.kr/ 16https://www.ecluster.net/en/common/file_control/file_Download.jsp?property=upload.path.eng_data&filename=13018171689090.pdf&rea

lname=National-Food-Cluster.pdf 17https://www.ecluster.net/en/common/file_control/file_Download.jsp?property=upload.path.eng_data&filename=13018171689090.pdf&rea

lname=National-Food-Cluster.pdf 18 The East West Center, Asia Matters for America, America Matters for Asian website, http://www.asiamattersforamerica.org/asia/data/population/states

Republic of Korea Economic Snapshot:

13th largest economy in the world;

5th largest import market for American agriculture, and 1st Californian agricultural products;

49 million consumers;

$36,700 per capita income;

Growing economy: 3.3 % in 2014; 32.7% projected in 2015;

Strong ties to U.S.;

Women in workforce;

Urbanized – 80%;

Slowing agricultural output;

Leading consumer behavior influencer within the Asian-Pacific Region.

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Changing trend lines in the regulatory framework (trade policy), global and local economics (i.e. disposable

income), consumer behaviors, and technological revolution all intersect in Korea to provide the America/California

food and beverage producer a great opportunity to sell products to the Korean and expanding Asian-Pacific

consumer base.

Regulatory changes (Trade policy) with the implementation of the Korea-United States Free Trade Agreement

(KORUS FTA), implemented March 15th of 2012, will eliminated 95 percent of all bilateral tariffs by 2017. As a

result of this action, American/California products have become less expensive and more available in the Korea

market.

19 KOTRA, Korea’s Food Industry and The National Food Cluster

These tariff removal trends are being reflected in South Korean household income data (see below slide) which in

turn translates into a growth of disposable personal income that is repurposed in the form of increasing consumer

demand for imported products. One such product is American (California wine) as shown by the following slide.

20 Tradingeconomics.com; South Korea Total Households Disposable Income

19 KOTRA, Korea’s Food Industry and The National Food Cluster, https://www.e-

cluster.net/en/common/file_control/file_Download.jsp?property=upload.path.eng_data&filename=13018171689090.pdf&realname=National-Food-Cluster.pdf 20 http://www.tradingeconomics.com/south-korea/disposable-personal-income

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Price changing due to FTA

In 2012, the United States and South Korea established a Free Trade Agreement, so the two economies are not

limited by any barriers to trade. The free trade agreement removed the tariffs on various industries including food

& beverage market. After FTA has been effectuated Korean consumers can buy American food & beverages in

lower price. For example, the most popular American wine, Robert Mondavi Cabernet Sauvignon’s price fell from

76,000 to 67,000 about 11.8%.

21 E-Mart, Lotte Mart, Lotte Department Store

Furthermore, according to Reaching the Consumer a March 2016 publication by SantanderTrade.com, the Korean

consumer profile is less nationalistic and more brand conscious than most. An even more interesting trend is that

of SENSE.

22 https://en.santandertrade.com/analyse-markets/south-korea/reaching-the-consumers

21 http://mengnews.joins.com/view.aspx?gcat=050&aid=2968619

22 Santandertrade.com, SOUTH KOREA: Reaching the Consumer website, https://en.santandertrade.com/analyse-markets/south-korea/reaching-the-consumers

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New consuming trend ‘SENSE’

Also, there is a new consuming trend in Korea called ‘SENSE’. People tend to ‘S’ave and control their unnecessary

expenditure because of these day’s bed economic situation. And especially women spend their money

‘E’motionally. It’s related to next ‘N’ which means they ‘N’eed to be healed. But they do not ‘S’pare money on kids.

The money they spend on kid’s education is growing. And they are eager for new ‘E’njoyable experience, too.

According to McKinsey & Company, “the world economy’s operating system is being rewritten.”23 One of the four

global trends rewriting the system, according to McKinsey Global Institute, is that of accelerating technological

change. Nowhere is that change felt more than in Korea. Korea has one of the world’s highest penetration rates of

mobile telephony, its deployed 4G-LTE and is well into testing the capabilities of 5G networks due in the 2020s,

coupled with dramatic growth of ecommerce platforms their associated social media and matching logistical

supply-chains facilitating the movement of goods worldwide. These trends all combine in Korea to create an

incredibly rich food and beverage ecosystem for American/California producers.

The Digital Power of South Korea

The latest statistics from various major sources show that the way of living in South Korea has become digitized in

all facets of daily life. Supported by the highest average network connection speed (205 MBPS) in the world, 90%

of the South Koreans use the Internet to access information, share data, participate in social media, and purchase

items. According to the year 2015 data, out of the 50.40 million population in South Korea, 45.31 million (90%) are

internet users, 38.40 million (76%) are active social media users, and 35.30 million (70%) are active mobile internet

users.

The New Way of Purchasing Goods: Overseas Direct Purchasing

This digital-driven life style has produced a profound impact in all activities of daily life in South Korea including the

way people purchase goods. In 2014, buying goods directly online from overseas represented more than 2 billion

dollars in volume, a 100% increase from 2013. Combined with the growing number of South Koreans traveling

abroad and the mandatory second language education from the grade school level and up, South Koreans now

have more opportunities to become familiar with overseas goods and getting more savvy with making overseas

direct purchasing. As for the goods from the U.S., the implementation of the free trade agreement between South

Korea and the U.S. in 2012 has made the direct online purchasing even more viable for South Koreans. According

to Global Web Index, a survey conducted in Q4 2015 showed that 72% of the South Korean population was active

e-commerce shoppers, meaning that they made a purchase via online in the past 30 days. The e-commerce sales in

South Korea is expected to reach more than US $40 billion in 2016. According to the Department of Customs and

Excise, the overseas direct purchase will exceed US $10 billion within five years. Along with the growth of e-

commerce market, the overseas direct purchasing market will no doubt evolve and expand as well.

23 McKinsey & Company, Book Excerpt, http://www.mckinsey.com/mgi/no-ordinary-disruption

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24 Statista dataset 25 Digital Media in South Korea

Digital Marketing via Social Media in South Korea

When it comes to social media, South Korea leads the world for having the highest percentage of population using

social media. 76% of the South Korean population are active social media users. In fact, South Koreans are ranked

number one in the world for mobile social use. As such, social media is fast becoming an important platform to

market products in South Korea. The top social media platform in South Korea is its own messenger application

Kakaotalk (41%). Facebook is next at 27%, followed by Kakaotalk-related Kakaostory at 17%. Although Twitter and

Instagram show only 10% and 7%, respectively, these two social media platforms are used by younger and more

digital-savvy population. The Korean Online Advertising Association forecasts that by year 2017, more than 1/3 of

mobile marketing and advertising in South Korea will go through social media platforms.

26 Statista dataset 27 Impact of Social Media on Purchase, Brandanew.com

24 Enakshi Sharma, July 15, 2015, How does Social Media Impact Consumer Purchases, http://www.brandanew.co/how-does-social-media-

impact-consumer-purchases/ 25 Digital Media in South Korea, https://wiki.smu.edu.sg/digitalmediaasia/Digital_Media_in_South_Korea 26 http://www.statista.com/statistics/304833/number-of-facebook-users-in-south-korea/ 27 Enakshi Sharma, July 15, 2015, How does Social Media Impact Consumer Purchases, http://www.brandanew.co/how-does-social-media-

impact-consumer-purchases/

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Digital Marketing Strategy

A cost-effective and immediate way to promote and market goods/products would require a combination of an

active presence in Naver, both blog and café, and regular postings on the social media platforms popular in South

Korea. The active blogging and social media activities can generate interest of the potential consumers who may

be looking for the latest and trendy California products that are not well known to South Koreans or unavailable in

South Korea, leading to direct online purchasing.

28 State of Mobile Commerce

This confluence of these trends is not occurring without the notice of the Korea government, and global agri-food

system. As the 13th largest economy in the world, lacking in natural resources, South Korea relies heavily on

imports. Recognizing this fact and the above mentioned trends, the Korean government has initiated within their

outward-looking Korean National Food Cluster (economic development strategy) a strategic North-East Asian food

industrial complex FOODPOLIS.29 FOODPOLIS located in the City of Iksan, is within a two-hour flight of 60 cities

with over one million populations. FOODPOLIS will comprise a number of research and development facilities,

coupled with global food manufacturers and related industries, a foreign trade zone, multi-modal transportation

and logistics capabilities providing a one-stop central location for accessing the 1.5 billion North-East Asian

consumers of China, Japan, and Korea.

Coupled with the FOODPOLIS, the Korean government relies on a Hallyu or The Korean Wave cultural strategy.

“The term Hallyu or Korean wave refers to Korea becoming the most important cultural force in Asia and beyond.

Korean movies, television shows and K-pop are enjoyed everywhere in the world.”30 Below is the evolution of the

Korean cultural export strategy, Hallyu, that American/California food and beverage producers can hope to

capitalize upon when entering the Korean market.

28 Criteo, State of Moble Commerce, http://www.criteo.com/media/1894/criteo-state-of-mobile-commerce-q1-2015-ppt.pdf 29 Korean National Food Cluster FOODPOLIS, http://eng.foodpolis.kr/ 30 William Tuk, Master thesis, Leiden University, https://openaccess.leidenuniv.nl/bitstream/handle/1887/20142/hallyu%20version%207.pdf?sequence=1

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31 The Rice Bowl article, September 8th, 2015 by David Barratt-Due

To help in leveraging the Hallyu (Korean Wave) phenomenon and Korean National Food Cluster Policies, CalAsian

Chamber and Tao Networks International have, in 2015 during the initial fact-finding trade mission to the Seoul

Food and Hotel Show, entered into two Memorandum of Understanding’s (MOU). The first is with the Gwangju

Technopark located in the city of Gwangju, in southeastern Korea. The purpose of this MOU is the development of

bilateral economic, cultural, research and educational exchanges between Gwangju Technopark and similar

entities in California. The second and more applicable to the KOREA DIRECT program is the MOU with the City of

Iksan which hosts the Korea National Food Cluster or FOODPOLIS. It is the FOODPOLIS which the KOREA DIRECT

will collaborate with and utilize in developing channels for the KOREA DIRECT program clients into the local as well

as food and beverage export markets. The below slide demonstrates the value of leveraging the K-Wave strategy

as a means for re-exporting into third-party national food and beverage markets around the Pacific Rim utilizing

Korea in much the same manner as California once set the national and world-wide trends in consumer taste and

behavior.

32 K-Wave Boost Economic Growth

4) U.S. industry resources that can be brought to bear on developing target markets;

The California Asian Pacific Chamber of Commerce (CalAsian Chamber) has a combined staff of 12 employees,

located in Sacramento the State Capital of California and headquarters for many of California’s food and beverage

processing cooperatives as well as the majority of the commodity marketing boards, commissions, and councils. 33

In addition, CalAsian Chamber maintains a network of 46+ strategic alliance partners or commonly referred to as

MOU partners, throughout the state as well as a growing CRM platform – powered by Salesforce - referred to as

the API Smart network, for a combined database of 251,000 contacts across the state and some around the world.

In addition, CalAsian Chamber maintains relationships with three partner offices in China (Chongqing (2) and

Shanghai) under the 2014 MDCP award for the CHINA DIRECT program. Descriptions of those complimentary

programs and partners re as follows:

While CalAsian hosts a number of programs and initiatives which interact to support each other, we

envision a cross-pollination of support from the following program and support staff. These Include:

o Administration

President & CEO Pat Fong Kushida

Ryan Fong, Operations Manager

o Marketing

31 David Barratt-Due, The Korea Wave: an overview, September 8, 2015, http://www.the-rice-bowl.net/artdesign/2015/9/7/ehq725lanfeur8f16dliuy6vzn002x 32 K-Wave boosts economic growth, Korea Joongang Daily, May 4th 2014, http://koreajoongangdaily.joins.com/news/article/Article.aspx?aid=3003773 33 California Department of Food and Agriculture marketing board website, https://www.cdfa.ca.gov/mkt/mkt/ordslaws.html

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Lauren Oto, Marketing Manager

Jefferson Jaramillo, Graphic Designer

o Events and Logistical Planning

Joe Wilson, Director of Events

o Public Policy

Julian Canete, Direct of Public Policy and Advocacy

Kathleen Soriano, Public Policy & Global Initiatives Coordinator

o Global Initiatives

Sam Driggers, Director of Global Initiatives

CalAsian Chamber Memorandum of Understanding partners (Attachment x-1)

o API SMART Network (Support Market Advocate Research Translate) The CalAsian API Network utilizes a proprietary software (Salesforce CRM) to assimilated the voices of the API business community into a strong and viable tool. The aggregation of community based organizations throughout the state coupled with State and Federal resources have provided the CalAsian Chamber and its partners with the ability to communicate strategic messages to specific industries, geographic locations, company sizes and other targeted audiences. (Attachment x-2)

o CalNOW Account - With a long history of supporting our rich and diverse business community,

the CALASIAN Chamber of Commerce is pleased to announce it has partnered with

NOWaccount® – the payment solution that works for B2B – to help our small business members

gain better access to growth capital.

TaoNetworks International, Inc. is an international consulting company based in San Bruno, California with operations in Korea. TaoNetworks specializes in providing localization consulting for the creation of cooperative business relationships between the U.S. and the Pacific Rim countries.

The Central Valley AgPlus Food and Beverage Manufacturing Consortium is a regional network of food and

beverage manufacturers (private sector), sub-regional community economic development, educational,

non-profit and governmental partners in the Central Valley committed “… to foster growth and the

creation of food and beverage businesses and middle-skills manufacturing jobs in the Central Valley.”34

Exportech ™ is a national program, produced by NIST, administered in California by the California

Manufacturing Technology Consulting (CMTC) in Southern California and in Northern California by MANEX

with the express purpose of helping firms develop export promotion plans and well as in-house skills.

Export 101 workshops. DHL Express has previously partnered with the U.S. Commercial Service (USCS), a specialized Department of Commerce division, in helping exisiting and to new exporting clients increase exporting sales. In Q1 2016, DHL Express USA and CalAsian agreed to offer – see letter of support – similar services through the Export 101 workshops model here in California. Below are some of the services available, free of charge from DHL the USCS and CalAsian’s network of partners. CalAsian and DHL Express partner with export specialists from 15 USCS offices available across California and 80 countries around the world support the President’s National Export Initiative. 35

California Centers for International Trade Development (CITD) were established in 1989, and are funded

by the Chancellor’s Office of the State of California to promote the state’s international trade and

competitiveness, assist exporters and importers, and advance economic and job growth. The CITDs assist

California business to expand internationally as well as help colleges become more globalized. With

offices across the state, the CITDs are considered a force multiplier for the KOREA DIRECT program in that

they are not only an awareness partner they are embedded into our SME Delivery component of the

program, the CITDs provide a full range of trade assistance services to companies and individuals in the

state of California. All services are either free or low cost. Their free or low-cost programs and services

include one-on-one technical assistance and consulting, market research, training and educational

programs, trade leads and special events.

34 The Central Valley AgPlus Food and Beverage Manufacturing Consortium, http://cvagplus.org/ 35 DHL Express Export Services, http://goglobal.dhl-usa.com/shipping-support-center/export-with-dhl/dhl-export-services/export-growth

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University of California at Davis, World Food Center is located on the campus of one of the top-ranked

universities in the world for agriculture. The World Food Center will help generate economic

development in the Northern California region and expand the connections between agriculture,

innovation and entrepreneurship. UC Davis is the one university to make this vision come alive.

5) U.S. industry’s ability to meet potential market demand; and

According to data from the East West Center’s AsiaMattersforAmerica.org website, “29 U.S. States and 11 South

Korean Regions have more than doubled exports in the last decade.” The top exporting state remains California at

$7.9 Billion in goods exported in 2012 according to the website. 36 Despite a long-term drought, California’s food

processing and agricultural industry continues to rebound from the significant hit in 2008-2009. According to a

June 2014 article in Business Expansion Journal, “… like most sectors of our economy, new technology, shifting

consumer tastes, impacts of climate change and rebounding global demand are driving food processing and

agricultural businesses to new heights in all clusters across North America.37

As of January 2015 report prepared for the California League of Food Processors, titled The Economic Impact of

Food and Beverage Processing in California and Its Cities and Counties, the authors acknowledge California as

having the largest number food and beverage processing establishments in the United States and that these

products are demanded by consumer worldwide.38 In another significant study detailing the Food Manufacturing

in California, stated that this cluster generated in excess of $90 Billion in revenue in 2010 with its greatest

concentration in the Great Central Valley. The report cited proximity to natural resources (raw product, growing

season, water) and lower operating costs as fundamentals for that geographic concentration.39

In 2013 California agriculture generated roughly $37.5 billion annually, more than any other state. According to

U.S. Department of Agricultural, Foreign Agricultural Service (FAS) report “California’s agricultural exports reached

an estimated $19.5 billion in 2013*, up from $11.7 billion in 2009. California’s exports help boost farm prices and

income, while supporting about 147,700 jobs both on the farm and in related industries such as food processing,

transportation, and manufacturing.”40 These factors all combine to underscore a trend in which “…California

commanded a 65.3% share and a 54.7% share of total US Fruits & Products and total US vegetable export value,

respectively in 2007.”41

As global demand – and demographic trends - for fresh fruit and beverages continue to expand, California food

and beverage producer’s products will remain in high-demand with more producers looking at Asia as a natural

gateway to consumers.

6) U.S. industry’s after-sales service capability in target markets.

After-sales service in the Korean market typically involves a guarantee, warranty, or a contractual obligation to

repair or replace the damaged good. In the case of food and beverages, after-sales support can encompass a wide

array of services that specifically cater to the end-user or consumer. These are designed to assist a customer in

using the product correctly, which could generate repeat customers, develop brand loyalty among those same

customers and ensure consumer satisfaction.

The various types of after-sales support may consist of the following:

36 East West Center, AsiaMattersforAmerica website, http://www.asiamattersforamerica.org/southkorea/data/trade/importexport 37 June 2014, page 11, Business Expansion Journal, Appetites Return to Food Processing. 38 January 2015, Page 1, The Economic Impact of Food and Beverage Processing in California and Its Cities and Counties, Richard J. Sexton, Josué

Medellín -Azuara, and Tina L. Saitone, California League of Food processors 39 2012 Chancellor's Office California Community Colleges Economic and Workforce Development Program, California’s Top Manufacturing Clusters, Page 14, http://www.makingitincalifornia.com/documents/California's%20Top%20Manufacturing%20Clusters%20Report%20-%202012.pdf 40 USDA, FAS report, http://www.fas.usda.gov/sites/default/files/2015-02/california_tpp_feb_2015.pdf 41 2011, Page 18, California Food Processing: A Powerhouse of Value

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Customer Service Hotline: Includes services advising the consumer how to use the product

Automated Customer Service: provides 24 hour assistance and is available online

Social Media or Blog: Includes online knowledge bases or forums in which consumers can ask questions

and receive proactive feedback or advice

After-sales support includes customer support and customer service, which are standard in the Korean food and

beverage sector.

C. Project Description

Building off the CalAsian Chamber Board of Director’s approved Global Initiatives Strategy, organized around four

key themes or priority areas (see below), that the chamber is actively pursuing a forward leaning international trade

promotion/community economic development agenda on behalf of our members and California small- to medium

sized businesses. The purpose, to grow businesses and local employment by providing tool and resources by which

they can become connected and sell into the growth markets in Asia Pacific Region.

Export & Trade Promotion

Research & Data

Investment & Business Attraction

Cultural Diplomacy

Working towards this goal, CalAsian Chamber has conducted a number of trade missions and other promotional

activities (hosting reverse trade missions, cultural diplomacy delegations, familiarization events and international

trade workshops) over the past several years. In addition, August 2014 we were awarded a MDCP program grant to

build out the CHINA DIRECT program and have used that funding to structure a state-wide multiplier network

engaged in export development. These include: industry associations, trade groups, service providers, community

economic development professionals, and commercial service officers from across California. It has been through

these efforts, and the lessons learned during our May 2015 Korea-Japan Trade & Leadership Mission that have

convinced us of the intrinsic value the Korean market and global E-commerce sourcing platforms hold for domestic

California branded food and beverage producers.

Structuring the KOREA DIRECT program, the CalAsian Chamber, in collaboration with Tao Networks International,

and in partnership with the U.S. Department of Commerce, have woven a number of existing programs (AgPlus, DHL

Export 101) and service providers (CMTC/MANEX, CITD, SBDC) with relationships developed during prior trade

missions (City of Iksan and Gwangju Technopark) into a seamless service provider pipeline connecting local

producers to the Korean marketplace via E-commerce platforms, annual trade missions, and match-maker

opportunities with in-bound buyers groups. The purpose, to help leverage existing trends and market demand to

sell more products in Korea and the Asian-Pacific Region as a whole. The following outlines the KOREA DIRECT

program (see attachment x-3).

KOREA DIRECT leverages four distinct competitive advantages: Brand California; Quality Products; National Affinity

Linkages; Technologically Savvy Entrepreneurs in order to sell into the aspirational growth markets of the Asia-

Pacific Region. We envision utilizing the newly installed CalAsian Salesforce CRM system – referred to as API Smart

Network – as a centralized repository for the following series of technical assistance activities:

AWARENESS – A multichannel marketing campaign leveraging:

CalAsian and Tao Networks International customized business information database that utilizes competitive intelligence (Hoovers) on more than 65 million companies, 85 million contacts, and 900 industry segments;

Our MOU partners existing BRE outreach programs and their communication mediums (electronic, print, web, so forth) as well as participating in or hosting events, workshops, local API community and business meetings, or other physical activity wherein API businesses congregate;

KOREA DIRECT – MDCP PROPOSAL

14

Lastly we envision all these efforts will utilize a single brand and marketing campaign to be known as KOREA DIRECT. The campaign will communicate, reinforcing the availability, types, and value of technical assistance on offer to help food and beverage (F & B) industry enterprises in accessing the Korean market for growing their business and the community.

INTAKE/TRIAGE – Gathering interested food and beverage businesses and funneling them to the KOREA DIRECT

program manager (single point of contact) for an Export Readiness assessment (see attachment x-4) and client

registration in the API SMART Network (CRM system. The initial intake and assessment process is designed to solicit

information through either an online survey or a conversation that assesses the business’s level of acumen and

proficiency in international trade and export development, financial matters, regulatory issues, or other areas of

need. It will match the business with the appropriate services and providers most likely to help the firm increase

their level of enterprise proficiency and/or growth opportunities. Recognizing every business is not created equal,

our service delivery mechanism is not either. The technical assistance services and training will be tailored to the

food and beverage enterprise needs during this intake/triage process.

SERVICE DELIVERY – Resources and services are assigned according to the client’s responses and needs. Registrant’s

are personally connected either by the program manager or via an electronic introduction from the API Smart

Network to one or more of the following SME services:

E-Commerce and In-Country Partners: Utilizing already established reciprocal in-country programming offices in the City of Iksan FOODPOLIS and/or Gwangju Technopark, Republic of Korea (see attachments x-6 and x-7) and here Sacramento, California, USA.

i. Conduct international marketing campaigns via social media outlets;

Collaborate with CMTC and MANEX ExportTech workshops in California, providing discounted exhibitor rate ($500.00 off price) to firms graduating from this program;

Partner with DHL Express in establishing a series of Export Workshop 101 around the state. We aim to have between three and five per annum, either embedded into exiting CalAsian events or with partnering organizations;

Refer clients to the California Center for International Trade Development for 1 to 1 Counseling and business plan assistance;

Recruit for and execute an annual Trade Mission to a Korean Food and Beverage Trade Show and associated in-country activities;

i. Utilize and supplement trade show and in-country partner match-maker meetings and Commercial Service Gold-Key Services;

ii. Conduct foreign market sales trip / take our clients on site visit to farm tours, processors,

retailers;

iii. Provide translation of marketing materials into foreign languages (two page maximum

included in registration);

iv. Export trade show exhibits

v. International trade training workshops

vi. Other export activities that may be

Reverse Trade/Buyer Missions (RTM): Conduct/invite USTDA, KOTRA, WUSTA delegations

i. Utilize USTDA RTM contractors and foreign national economic development agencies to

connect domestic businesses with these opportunities;

ii. Foreign buyer sales trip / conduct site visit to farm tours, processors, retailers;

iii. Guide influencers and others in aspirational or experiential leadership positions, retailers,

importers, government officials, bloggers, and those associated with the supply chain!

PURPOSE: Emotionally connect key points in Korean supply and cold chains with food and

beverages associated with California Grown Lifestyle!

KOREA DIRECT – MDCP PROPOSAL

15

Connect clients to private and non-profit Micro-loan financiers (EDOs, SBA, private or non-profit financial institutions, etc.);

Conduct a number of strategically located international trade/technical assistance, workshops and match-maker opportunities throughout the state with our partners at the Commercial Service, GoBiz, CALED, CITD,, community economic development organizations and trade associations, etc.;

As well as connecting clients to the relevant Federal, state, regional, local and non-profit and other service providers based upon the client needs assessment.

OUTCOMES – Through the use of both the KOREA DIRECT team members as well as technological applications (CRM

system), client satisfaction and outcomes/impacts will be measured via a series of after-action surveys. CalAsian,

Tao Networks International, and our partners will collect measurable outcomes - depending upon the type of

services provided and export channels utilized - on an annual basis, to be shared with U.S. Department of Commerce,

the team, and the community.

o Post-Client Survey: Conduct satisfaction and impressions surveys (API SMART Network)

Annual client satisfaction and service survey

Quarterly of targeted SMEs for impressions

It is from this outcomes research and in consultation with our partners, that we will establish baseline metrics for

Year One, focusing on the following measurable outcomes:

Technical Assistance provided

Trade Show and E-commerce Platform Export Actions or Contract negotiated

Investments/Jobs Created

Export Finance or Insurance obtained

Legislation/Policy Changes impacting SME’s

Other Value Proposition data as to be determined

After Action and Best Practices report

Annual How to do Business in the Pacific Rim event and/or regional export workshops D. Performance Measurement

1) ITA performance Measures (quarterly report part A)

The KOREA DIRECT program anticipated exports have been calculated in the budget narrative section of the

application. Project specific milestones are:

o Number of firms and their E-commerce transactions:

During first 3 years - #60 total for $24.84 million in transactions

Post award 4 years - #120 total for $69.66 million in transactions

o Number of firms participating in Trade Show/Trade Mission and their transactions:

During first 3 years - #51 total for $27.54 million in transactions

Post award 4 years - #76 total for $41.04 million in transactions

o Number of firms participating in Reverse Trade Mission buyer activities and their transactions:

During first 3 years - #71 of which 42 make sales for a total of $15.12 million

Post award 4 years - #96 of which 56 make sales for a total of $25.9 million

o Number of firms participating in overall KOREA DIRECT program: goal 475 participating firms for export

transaction total $199.26 million (three + four years)

2) Applicant-Designed Measures (quarterly report part B)

CalAsian # Measure Instances Explanation Reporting Method

KOREA DIRECT – MDCP PROPOSAL

16

5a U.S. firms participating in briefing Global Policy Summit

70 Number of firms to participate in at least one of the 3 Global Policy Summit.

Succe

ss Agree

men

t follo

w-u

p

5b U.S. firms participating in How to do Business in the Pacific Rim event

70 Number of firms to participate in at least one of the 3 annual Pac Rim events.

6 U.S. firms converted to program clients via outreach activities

125 Number of firms recruited from one of the annual outreach events.

7 U.S. firms utilizing adopting Cross-border E-commerce strategy for export sales to Korea

60 Number of firms requesting and completing online export profile and Korean translations.

8 U.S. firms participating in trade shows/trade missions

51 Number of firms participating in at least one of the three missions.

9 Reverse Trade Missions (RTM) potential customers participating in Food Processing Expo or other California F & B industry events

72 CalAsian and Tao Networks International to promote RTM from USTDA, KOTRA, or other sponsoring agencies.

RTM contractor feedback/Survey KOREA DIRECT clients

10 U.S. firms participating in ExporTech, Export 101 workshops, CITD 1:1 counseling or other “SME Delivery” activities that can be measured

185 Number of firms participating in at least one of the SME Service Delivery activities or partner organizations programs.

Success Agreements, Client feedback, partner feedback

3) Estimate Performance in application - The KOREA DIRECT program anticipated exports have been

calculated in the budget narrative section of the application.

4) Performance Measure Recording and Reporting System

Export actions are to be assembled using the API SMART Network system from the following reporting channels:

success agreements; verbal and site visit feedback; self-reporting via electronic surveys; E-commerce collaboration

feedback. (see attachment x-2)

E. Partnerships with ITA and other federal agencies

The CalAsian Chamber continues to enjoy a long-standing working relationship between our Federal partners in

the U.S. Department of Commerce, both in California as well as at headquarters. These relationships include the

local U.S. Export Assistance Center and Minority Business Development Agency locations across the state, the U.S.

Census Bureau in Los Angeles, as well as Small Business Administration and EXIM Bank representatives situated

around California. Several of these Federal representatives have been instrumental in help CalAsian establish our

Global Initiatives programs and will be involved in the implantation of the KOREA DIRECT program. These include:

ITA’s Office of Consumer Goods Industries Team: Jim Rice (Team Leader); Corey Wright (International Trade

Specialist); Jamie Ferman (International Trade Specialist)

U.S. Based Commercial Service: George Tastard (Sacramento, U.S. Export Assistance Center; Glen Roberts and

Bernadette Rojas (Fresno, U.S. Export Assistance Center); Bobby Hines (Los Angeles, U.S. Export Assistance

Center); Rod Hirsch (Oakland, U.S. Export Assistance Center); Elizabeth Krauth (North Bay, U.S. Export Assistance

Center); Fed Latuperissa (Ontario, U.S. Export Assistance Center); James Mayfield (Orange County, U.S. Export

Assistance Center)

ITA’s U.S. Based Country Desk Officer: Simon Kim (Washington, D.C., Commercial Desk Officer)

KOREA DIRECT – MDCP PROPOSAL

17

Foreign Embassy Commercial Officers and Trade Specialists: David Gossack (Minister-Counselor-Counselor for

Commercial Affairs, U.S. Embassy Korea); Yoon Shil Chay (Senior Commercial Specialist – Korea)

F. Credentials (resumes)

1) KOREA DIRECT (See attachment x-3)

KOREA DIRECT Program Manager (Rancho Cordova-Sacramento, California, USA) will demonstrate a superior knowledge of the American/California food and beverage industry, including trends and opportunities for both domestic as well as international export opportunities with focus on Korea and the Asian-Pacific region. This program manager will have the personality and client relations management experience to manage all aspects of an outreach and trade promotion campaign concentrated in the processed food and allied industries of California. The program manager will conduct several types of outreach activities including but not limited to: trade show, trade missions, industry events, workshops, speaking engagements site visits. The program manager will also be fluent in written and spoken English and Korean.

Duties include: Establishing program in California and interfacing with in-country programming partners (City of Iksan and Gwangju Technopark) in Korea in addition to U.S. Commercial Service partner both domestically as well as internationally with the specific focus of helping companies with export related inquiries about the Korean market. Establishing and maintaining good relations and frequent communications with relevant government regulators, industry organizations, and individual Korean companies in the industry. Maintaining a database of industry contacts and a calendar of industry events, using the API SMART Network system. Domestic and international travel is required. City of Iksan, and the Gwangju Technopark are the international in-country programming partners of the CalAsian Chamber of Commerce for the KOREA DIRECT program. They will contribute in-country programming staff who demonstrate an in-depth understanding of the national processed food and beverage markets as well as allied industries. These partners will develop in-country networks for matching American firms seeking to export to Korea and beyond as well as coordinate project activities including briefings, seminars and on-the-ground trade mission related activities for the in-bound delegations.

2) Team Resumes

CalAsian President & CEO, Pat Fong Kushida

Ms. Fong Kushida is the founding President and CEO of the California Asian Pacific Chamber of Commerce. Through her

efforts, relationships have been developed to link one of the most prominent business organizations to opportunities

throughout the state and provide advocacy and outreach to a significant portion of California’ over 600,000 Asian Pacific

Islander owned businesses. Ms. Fong Kushida designed a web-based platform to connect small, disadvantaged business

enterprises to contracts in the public and private supplier diversity contract arena, currently being utilized by the

California Public Utility Commission and the Department of Transportation as well as local public and private entities.

She has partnered with the California Community College System on a Contract Readiness Program that delivers contract

curriculum to the 112 community colleges in California. She was recently appointed by the Governor to serve on the

California Student Aid Commission. Ms. Kushida graduated with honors from California State University, Sacramento

with a minor in Communications and a Bachelor’s of Science in Business Administration, Marketing concentration.

CAPPC Director of Global Initiatives, Sam Driggers, M.A., CEcD

Mr. Driggers came to CalAsian in 2013, as Certified Economic Developer (CEcD) with more than 20 years of

international, statewide and local experience in business and economic development, international trade

promotion and agricultural resource development. Sam began his professional career in Washington D.C. as a

political operative for a national political party, later transitioning as an international development recruiter for

an agricultural focused non-governmental organization that relocated him to their West Coast operations in

Sacramento, California. His work experience extends from the California Technology, Trade and Commerce

Agency as an international trade specialist and later program manager for the manufacturing technology

program, to director of business and economic development at the Sacramento Metro Chamber later recruited

to be the lead economic developer for El Dorado County, and in his current position with the City of Oroville as

KOREA DIRECT – MDCP PROPOSAL

18

economic development manager he is responsible for building local organizational capacity, developing

strategic relationships with diverse stakeholder groups while catalyzing investment in the local community.

Sam earned his Master of Arts degree in international trade and policy studies from the Monterey Institute of

International Studies. Most recently he earned an Executive Education Certificate in Leading Economic Growth

from Harvard University’s, John F. Kennedy School of Government. Sam received his undergraduate degrees in

Economic History and African Political Studies from the University of Cape Town and Rhodes University, in South

Africa. Sam is a graduate of the University of Oklahoma’s, Economic Development Institute and maintains his

Certified Economic Developer professional accreditation from the International Economic Development Council.

CAPCC Administration Manager, Ryan Fong

Mr. Fong has served as CAPCC’s Administration Manager since October 2012. He holds a Bachelor of Arts in Integrative

Biology (Emphasis in Human Biology and Health Sciences Experience) from the University of California, Berkeley. Mr.

Fong performs monthly internal financial audits on federal grants, manages all daily accounting needs of the

organization and manages human resources.

Tao Networks International, President & CEO, HeeJin Park

HeeJin currently serves as the Chief Executive Officer at TaoNetworks Int’l, Inc. In this capacity, he leads all

projects in business planning and execution. His project experiences in formulating U.S. go-to-market & sales

channel strategies are for various clients in the areas of network security, telecommunications, rich-media,

wireless, mobile applications, telematics and payment/settlement. Since 2011, HeeJin has expanded his

expertise in planning and executing projects to coordinating various inbound and outbound local governmental

economic cooperative functions including the ChungNam Economic Promotion Agency’s mission trip to

Sacramento in 2014 and the visiting of the mayor from City of Iksan, South Korea, to West Sacramento in 2015.

Along with the California Asian Pacific Chamber of Commerce, he successfully led a trade and leadership mission

to South Korea in 2015.

Tao Networks International, Program Manager, Candice Park

Currently serving as Vice President at TaoNetworks International, Inc. Candice Y. Park is involved in planning and

coordinating inbound and outbound local governmental economic cooperative functions between South Korea

and California as well as managing various documentation projects for companies from South Korea.

G. Evidence of support from U.S. firms interested in participating

Listed below is a partial roster of CalAsian Chamber members or food and beverage industry businesses who have

either participated on previous trade missions, workshops, or accessed international trade promotion services and

agree to participating again in the future. worked with CalAsian Chamber on previous trade missions either

interested or agree to participate on future trade missions who have either exhibited with CalAsian Chamber in the

past and agree to participate in the future or

COMPANY NAICS SECTOR PROJECT

[Wente Vineyards] 31213001 Wineries Committed to Participate

[L’Artisan Gourment Parisian Macarons[

541611 Admin. Mngt. & General Mngt. Committed to Participate

[Bayliss Botanicals] 325411 - Medicinal and botanical manufacturing

Interested

[Kenzo Estate (Winery)] 653118 (Real Estate) Interested

[Morgan’s of California] 311423, Dried and Dehydrated Food Manufacturing

Interested

[Mariani Packing Co., Inc.] 311423, Dried and Dehydrated Food Manufacturing

Interested

[ ]

This page contains proprietary information, identified between brackets [], the release of which would cause competitive harm to the California Asian Pacific Chamber of Commerce.

KOREA DIRECT – MDCP PROPOSAL

19

[Z Foods (Dried Fruit Processor)] 111998 (All Other Miscellaneous Crop Farming)

Interested

[Sun Valley Rice (Rice Processor)] 52391001, Miscellaneous Intermediation Committed to Participate

[Grower Direct] 42445008, Confectionery Merchant Wholesalers

Committed to Participate

[SunWorld International] 111998, All Other Miscellaneous Crop Farming

Committed to Participate

[SunFresh] 42448009, Fresh Fruit & Vegetable Merchant Wholesalers

Committed to Participate

[San Francisco Bay Gourmet Coffee] 445299, All Other Specialty Food Stores Committed to Participate

[Guittard Chocolate Company] 31135, Chocolate and chocolate

confectionery manufacturing

Committed to Participate

[Nutiva] 311999, All Other Miscellaneous Food Manufacturing

Committed to Participate

[Primavera Marketing] 541613, Marketing Consulting Services Committed to Participate

[Initiative Foods] 333241, Mfg Food Products Machinery Committed to Participate

[Golden Specialty Foods] 31199906, All Other Miscellaneous Food Manufacturing

Interested

[Del Monaco Foods] 42442005, Packaged Frozen Food Merchant Wholesalers

Interested

H. Use of ITA emblem

1) See attachment x-10, 11, 12

I. Success Agreement

Korea Direct Success Agreement

The California Asian Pacific Chamber of Commerce (CalAsian Chamber) has partnered with the U.S. Department of

Commerce in developing multiple sales and distribution channels for American manufacturing firms to sells their

products abroad. Specifically, this program is called KOREA DIRECT and it involves the utilization of expanding cross-

border E-commerce sales channel (B2C) coupled with a series of annual trade missions (B2B and B2D) for the pursuit

and development of opportunities to increase sales in South Korea and by extension other Asian countries. Partial

funding has been provided by Commerce’s International Trade Administration (ITA) through its Market Development

Cooperator Program (MDCP).

Benefits of participating in the trade mission and your responsibilities as a participant are identified below. Please

note that some of these benefits are time-sensitive and contingent on when you sign up to participate.

BENEFITS

1. GLOBAL E-COMMERCE

Market Research/Analysis

Internet Advertising/Promotion

Smartphone/Website Localization Assistance Services

Social Media/Web Promotions

E-Commerce Logistics Technical Assistance2. TRADE MISSION

Pre-mission webinars/seminars on market and industry briefings

Local travel and hotel arrangements

This page contains proprietary information, identified between brackets [], the release of which would cause competitive harm to the California Asian Pacific Chamber of Commerce.

[ ]

KOREA DIRECT – MDCP PROPOSAL

20

Gold Key Matchmaking Services organized by the U.S. Commercial Service to include customized, pre-screened one-on-one meetings with prospective trade partners.

Translation of product brochure/materials (up to two pages)

Translators on-site to facilitate discussions with buyers

Site visits to local facilities

Exhibition fees and participation in the CalAsian Chamber’s booth (for 2017-2020 trade show in South Koreaonly)

PARTICIPANT’S RESPONSIBILITIES – REPORTING YOUR SUCCESS

Submit a confidential quarterly report to discuss your export results based on your participation in the trademission, including dollar value and number of sales, types of goods sold, contracts formed, and any otherexamples of your success in developing the South Korean market.

If ITA or the CalAsian Chamber would like to publicize any of your success, we will ask for your approval inwriting.

U.S. PRODUCT

I certify that I am, that my company is, or that I or my company represents: (a) a United States citizen; (b) a

corporation, partnership or other association created under the laws of the United States or of any State; or (c) a

foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described

in (a) and (b) above; AND I am, my company is, or the entity I or my company represents is, exporting, or seeks to

export goods or services produced in the United States, or goods or services that contain at least 51 percent U.S.

content.

I understand that this certification is a requirement to participate in the MDCP project activity described aboveand that an intentionally false certification may result in termination of participation in such activity.

Information provided to the International Trade Administration (ITA) is intended solely for internal use. ITA willprotect business confidential information to the full extent permitted by law and Administration policy. U.S. lawprohibits U.S. government employees from disclosing trade secrets

I agree to the terms of the success agreement with CalAsian Chamber as set forth above.

Company name

Email/Phone

Address

Name

Title

Signature Date

CAPCCCalifornia Asian Pacific Chamber of Commerce

Total

15 Exhibitors 10 Exhibitors 24 Participants 17 Exhibitors 20 Exhibitors 24 Participants 19 Exhibitors 30 Exhibitors 24 Participants 183 Participants

Quarter end Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value

2016 Dec 31 14 $2,520,000 14 $2,520,000

2017 Mar 31 18 $3,240,000 18 $3,240,000

2017 Jun 30 9 $1,620,000 7 $1,260,000 5 $900,000 15 $2,700,000 36 $6,480,000

2017 Sep 30 5 $900,000 8 $1,440,000 7 $1,260,000 20 $3,600,000 40 $7,200,000

2017 Dec 31 6 $1,080,000 9 $1,620,000 10 $1,800,000 25 $4,500,000

2018 Mar 31 3 $540,000 9 $1,620,000 5 $900,000 17 $3,060,000

2018 Jun 30 4 $720,000 18 $3,240,000 5 $900,000 17 $3,060,000 44 $7,920,000

2018 Sep 30 2 $360,000 24 $4,320,000 7 $1,260,000 23 $4,140,000 56 $10,080,000

2018 Dec 31 12 $2,160,000 9 $1,620,000 11 $1,980,000 32 $5,760,000

2019 Mar 31 6 $1,080,000 9 $1,620,000 6 $1,080,000 21 $3,780,000

2019 Jun 30 4 $720,000 27 $4,860,000 5 $900,000 36 $6,480,000

2019 Sep 30 2 $360,000 36 $4,860,000 7 $1,260,000 45 $6,480,000

46 $8,280,000 24 $4,320,000 36 $6,480,000 50 $9,000,000 60 $10,800,000 36 $6,480,000 57 $10,260,000 63 $9,720,000 12 $2,160,000 384 $67,500,000

2019 Dec 31 18 $3,240,000 9 $1,620,000 27 $4,860,000

2020 Mar 31 9 $1,620,000 9 $1,620,000 18 $3,240,000

2020 Jun 30 4 $720,000 4 $720,000

2020 Sep 30 2 $360,000 2 $360,000

2020 Dec 31 0 $0

2021 Mar 31 0 $0

2021 Jun 30 0 $0

2021 Sep 30 0 $0

2021 Dec 31 0 $0

2022 Mar 31 0 $0

2022 Jun 30 0 $0

2022 Sep 30 0 $0

2022 Dec 31 0 $0

2023 Mar 31 0 $0

2023 Jun 30 0 $0

2023 Sep 30 0 $0

0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 27 $4,860,000 24 $4,320,000 51 $9,180,000

Reverse Trade

Missions 2017

eCommerce Platform

2017

Food Week Korea

2016

Reverse Trade

Missions 2018

Reverse Trade

Missions 2019

eCommerce 2019Seoul Food Show

2018

eCommerce Platform

2018

Seoul Food Show

2017

CAPCCCalifornia Asian Pacific Chamber of Commerce

Quarter end

2016 Dec 31

2017 Mar 31

2017 Jun 30

2017 Sep 30

2017 Dec 31

2018 Mar 31

2018 Jun 30

2018 Sep 30

2018 Dec 31

2019 Mar 31

2019 Jun 30

2019 Sep 30

2019 Dec 31

2020 Mar 31

2020 Jun 30

2020 Sep 30

2020 Dec 31

2021 Mar 31

2021 Jun 30

2021 Sep 30

2021 Dec 31

2022 Mar 31

2022 Jun 30

2022 Sep 30

2022 Dec 31

2023 Mar 31

2023 Jun 30

2023 Sep 30

Grand

Total

19 Exhibitors 30 Exhibitors 24 Participants 19 Exhibitors 30 Exhibitors 24 Participants 19 Exhibitors 30 Exhibitors 24 Participants 19 Exhibitors 30 Exhibitors 24 Participants 475 Exhib booths

Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value Sales Value

14 $2,520,000

18 $3,240,000

36 $6,480,000

40 $7,200,000

25 $4,500,000

17 $3,060,000

44 $7,920,000

56 $10,080,000

32 $5,760,000

21 $3,780,000

36 $6,480,000

45 $6,480,000

0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 384 $67,500,000

17 $3,060,000 44 $7,920,000

23 $4,140,000 41 $7,380,000

11 $1,980,000 27 $4,860,000 5 $900,000 17 $3,060,000 64 $11,520,000

6 $1,080,000 36 $6,480,000 7 $1,260,000 23 $4,140,000 74 $13,320,000

18 $3,240,000 9 $1,620,000 11 $1,980,000 38 $6,840,000

9 $1,620,000 9 $1,620,000 6 $1,080,000 24 $4,320,000

4 $720,000 27 $4,860,000 5 $900,000 17 $3,060,000 53 $9,540,000

2 $360,000 36 $6,480,000 7 $1,260,000 23 $4,140,000 68 $12,240,000

18 $3,240,000 9 $1,620,000 11 $1,980,000 38 $6,840,000

9 $1,620,000 9 $1,620,000 6 $1,080,000 24 $4,320,000

4 $720,000 27 $4,860,000 5 $900,000 17 $3,060,000 53 $9,540,000

2 $360,000 36 $6,480,000 7 $1,260,000 23 $4,140,000 68 $12,240,000

18 $3,240,000 9 $1,620,000 11 $1,980,000 38 $6,840,000

9 $1,620,000 9 $1,620,000 6 $1,080,000 24 $4,320,000

4 $720,000 27 $4,860,000 5 $900,000 36 $6,480,000

2 $360,000 36 $6,480,000 7 $1,260,000 45 $8,100,000

57 $10,260,000 90 $16,200,000 36 $6,480,000 57 $10,260,000 90 $16,200,000 36 $6,480,000 57 $10,260,000 90 $16,200,000 36 $6,480,000 51 $9,180,000 63 $11,340,000 12 $2,160,000 732 $131,760,000

Reverse Trade

Missions 2023

Seoul Food Show

2022

eCommerce Platform

2023

Seoul Food Show

2020

eCommerce Platform

2021

Reverse Trade

Missions 2021

Seoul Food Show

2021

eCommerce Platform

2022

Reverse Trade

Missions 2022

Food Week Korea

2019

eCommerce Platform

2020

Reverse Trade

Missions 2020

Korea Direct

Part 3: Budget Narrative

(A) Budget for Project Award Period

The budget for the project award periods are provided in this Part 3, Budget. It supports and explains the

figures reported on SF-424A, which is included in Part 1, Forms. The only additional form included here

in Part 3, Budget is the Performance Projections for the Project Narrative (pg. 13 &14).

(B) Supporting Worksheets and Explanations

The more detailed supporting worksheets and explanations are included here in Part 3, Budget.

(C) Financial Systems

As shown on the budget for project award period, 34% of the $635,707 of cash match is salary and benefits. This works out to be about $71,820 per year. Program income accounts for 34% of the cash match, which comes from trade missions and workshops organized by the CAPCC. The remaining 32%

includes in-kind match provided by partners and indirect expenses (calculated at a 10% rate). As evidenced by the CAPCC financial statements, this in-kind contribution easily falls within the total

amount of salary and benefits for CAPCC.

(D) Other Financial Assistance Awards

In 2009, CAPCC received a $150,000 SBTRC award (SBTRCCAPCC2013), which was renewed in

2013 for another three years, to support the Department of Transportation, Small Business

Transportation Resource Center efforts in California, Hawaii, Arizona, and Nevada. The federal

program officer for the award is Mark Antoniewicz, Small Business Specialist, Office of Small and

Disadvantaged Business Utilization (OSDBU), Office of the Secretary, US Department of

Transportation, 202-366-0658,

mark.antoniewicz@dot.gov.

In 2013, CAPCC received a $600,000 grant (12-E9096) to provide outreach and education for Covered

California, Affordable Care Act. The program officer for the award is Mary Watanabe, Covered

California Community Relations Division Manager, 916-323-3759, mary.watanabe@covered.ca.gov.

In 2014, CAPCC received a $299,937 MDCP grant (IT14INA1120004) to help facilitate processed foods exports to China through the China Direct Program. The program officer for the award is Corey Wright, International Trade Specialist, 202-482-2844, corey.wright@trade.gov.

DRAFTDec-2015 2014

CURRENT ASSETS

Cash 239,211$ 25,843$

Accounts Receivable 119,089 464,175

Allowances for Bad Debt (9,557) (17,500)

Accounts Receivable-CAPCCF 25,448 448

Prepaid Expenses - -

Tech Platform 110,465 76,304

Total Current Assets 484,657$ 549,270$

FIXED ASSETS

Furniture & Equipment 2,591 2,591

Total Fixed Assets 2,591$ 2,591$

TOTAL ASSETS 487,248$ 551,861$

CURRENT LIABILITIES

Accounts Payable 158,041$ 247,301$

Due to SACC 21,143 85,760

Total Line of Credit 143,353 48,381

Deferred revenue 43,500

TOTAL LIABILITIES 366,038$ 381,442$

NET ASSETS

Net Assets- Beginning of the year 170,419 161,724

Year-to-date change in net assets (49,209) 8,695

TOTAL NET ASSETS 121,210 170,419

TOTAL LIABILITY AND NET ASSETS 487,248$ 551,861$

CALIFORNIA ASIAN PACIFIC CHAMBER OF COMMERCE

Statement of Financial Positions

December 2015 and 2014

ASSETS

LIABILITY AND NET ASSETS

DRAFT2014

Actual Budget Variance Actual Budget Variance Actual

REVENUE

Membership 43,000$ 46,667$ (3,667)$ 245,135$ 560,000$ (314,865)$ 157,405$

Affinity Programs 2,505 - 2,505 4,390 - 4,390 -

Public Policy 1,000 - 1,000 107,500 105,000 2,500 40,000

International Trade 31,988 60,250 (28,262) 226,297 381,000 (154,703) 176,531

Programs 17,000 28,500 (11,500) 247,733 142,000 105,733 285,999

Tech Platform - 12,222 (12,222) - 125,000 (125,000) 70,000

Events - - - 900 45,000 (44,100) 59,000

CA Asian Summit - - - 270,438 300,000 (29,562) 265,626

DOT 19,388 22,917 (3,529) 206,308 275,000 (68,692) 225,664

Covered California - - - 44,551 - 44,551 385,924

ESS Program 218,333 340,000 - 340,000 -

Miscellaneous Income - - - 1 - 1 26,500

Total Revenue 333,214$ 170,556$ 162,658$ 1,693,253$ 1,933,000$ (239,747)$ 1,692,649$

EXPENSES

Variable Expenses

Membership 380$ 417$ (37)$ 1,815$ 5,000$ (3,185)$ 1,786$

Affinity Programs - - 625 - -

CA Biz Summit - - - 100,067 175,000 (74,933) 213,597

Events - - - 7,687 15,000 (7,313) 1,982

International Trade 23,383 37,750 (14,367) 241,952 296,000 (54,048) 140,854

Programs 3,443 19,750 (16,307) 13,985 163,500 (149,515) 139,513

Covered California - - - 40,905 3,500 37,405 336,398

ESS Program 38,550 - 38,550 46,758 - 46,758 -

Public Policy - - - 17,231 24,000 (6,769) 6,625

Bad Debt 25,144 2,500 22,644 315,946 30,000 285,946 76,937

Total Variable 90,900 60,417 30,484 786,971 712,000 74,346 917,693

Fixed Expenses

Payroll

CAPCC 32,663 50,000 (17,337) 444,692 600,000 (155,308) 275,708

DOT 11,544 11,667 (123) 133,459 140,000 (6,541) 122,465

Administration

CAPCC 21,219 2

12,500 8,719 179,405 150,000 29,405 140,746

DOT 4,523 11,250 (6,727) 72,933 135,000 (62,067) 102,342

Management Fee - SACC 10,417 10,417 (0) 125,000 125,000 (0) 125,000

Total Fixed 80,365 95,833 (15,468) 955,490 1,150,000 (194,510) 766,261

Total Expense 171,266$ 156,250$ 15,016$ 1,742,461$ 1,862,000$ (119,539)$ 1,683,954$

NET INCOME 161,948$ 14,306$ 147,643$ (49,208)$ 71,000$ (120,208)$ 8,695$

CALIFORNIA ASIAN PACIFIC CHAMBER OF COMMERCE

Statements of Revenue and Expenses - Budget to Actual

For the Month of December 2015

Month Ended December 31, 2015 Year to Date 2015

CAPCCCalifornia Asian Pacific Chamber of Commerce

2015

Expenses

Salaries 390,224

Fringe benefits 54,468

Supplies 5,496

Phone Service 7,472

IT Services 3,296

Printing 6,124

Dues/Subscriptions 9,346

Rent 25,440

Equipment 551

Travel 12,086

Meetings 1,229

Contracted Services 86,559

Trade Mission 92,135

Events 124,985

Technical Assistance 38,985

Membership 2,440

Licenses/Taxes 21,806

Total 882,642

Fringe Benefits Rate Calculation

DomesticFringe benefits 54,468

Salaries 390,224 = 13.96%

International 0.00%

Indirect Cost RateFlat rate allowed for all MDCP

projects.= 10.00%

California Asian Pacific Chamber of Commerce

Income Statement

CAPCCCalifornia Asian Pacific Chamber of Commerce

Activity Calculation1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

Daily expense Expenses/traveler

a b c d=

(a+

b)c

e f g h=

(d+

e+f)

g

Travel domestic Lo

dg

ing

Mea

ls &

in

cid

enta

l

exp

ense

s

Day

s

Sub Airfare Lo

cal

trav

el &

Mis

c

Tra

vel

ers

Total

Counsel Members &

Attend Outreach

Events: Meet with

member businesses or

attend outreach event

2 times per month,

with same day travel,

no overnight lodging

Program

Manager auto

travel to member

companies or

outreach event

0 45 24 1,080 0 0 1 1,080 1,080 1,080 1,080

Counsel Members &

Attend Outreach

Events: Meet with

member businesses or

attend outreach event

at least 1 time every

month, with overnight

lodging

Program

Manager auto

travel to member

companies or

outreach event

200 45 30 7,350 0 50 1 7,400 7,400 7,400 7,400

Counsel Members &

Attend Outreach

Events: Meet with

member businesses 1

time every quarter,

with airfare and

overnight stay

Program

Manager plane

travel to member

companies

200 45 6 1,470 2,700 100 1 4,270 4,270 4,270 4,270

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

How to Do Business

in the Pacific Rim in

California (location to

change annually),

August: a 1-day event:

Once per year for 3

yrs.

CalAsian staff to

participate in

event and

network.

150 45 1 195 300 0 5 2,475 990 1,485 990 1,485 990 1,485

Export 101 in

California: a 1-day

event: 3 times per year

for 3 yrs.

Program

Manager to

attend event and

network; hosted

by DHL

150 45 3 585 0 50 1 635 635 635 635

Export Tech

Workshop in

Southern CA: a 1-day

event: twice per year

for 3 yrs.

Program

Manager to

attend event and

network, hosted

by CMTC

150 45 2 390 600 0 1 990 990 990 990

Travel (domestic) TOTAL 15,365 0 1,485 0 15,365 0 1,485 0 15,365 0 1,485 0

Daily expense Expenses/traveler

a b c d=

(a+

b)c

e f g h=

(d+

e+f)

g

i=g

*1

00

0

j=h

-i

i=g

*1

00

0

j=h

-i

i=g

*1

00

0

j=h

-i

Travel international

(Travel source:

Kayak search &

federal perdiem

rates) Lo

dg

ing

Mea

ls &

in

cid

enta

l

exp

ense

s

Day

s

Sub Airfare Lo

cal

trav

el &

Mis

c

Tra

vel

ers

Total

Food Week Korea in

Seoul, South Korea,

November: a 4-day

event with 3 more

days allowed for for

arrival & departure &

post-event

appointments: Year 1

only.

Participating

companies

230 100 7 2,310 0 100 17 40,970 3,400 37,570

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

Food Week Korea in

Seoul, South Korea,

November: described

above.

CalAsian staff 230 100 7 2,310 1,032 100 1 3,442 3,442

Seoul Food & Hotel

Show in Seoul, South

Korea, May: a 3-day

trade show with 4

more days allowed for

for arrival & departure

& post-event

appointments: Once

per year for Years 2 &

3.

Participating

companies

230 100 7 2,310 0 100 17 40,970 3,400 37,570 3,400 37,570

Seoul Food & Hotel

Show in Seoul, South

Korea, May:

described above.

CalAsian staff 230 100 7 2,310 1,032 100 1 3,442 3,442 3,442

TOTAL 6,842 37,570 0 0 6,842 37,570 0 0 6,842 37,570 0 0

Equipment

0 0

TOTAL 0 0 0 0 0 0 0 0 0 0 0 0

Supplies

Laptops Program Manager 3,000 3,000

Misc. Office Supplies 1,200 400 400 400

TOTAL 3,400 0 0 0 400 0 0 0 400 0 0 0

a b c=ab

Contractual Fee Par

tici

pan

ts

Total

Attend Outreach

Events in California:

Registration Fees

CalAsian Staff 150 9 1,350 1,350 1,350 1,350

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

Support of Outreach

Events in California:

Sponsorship of 2

events

Based off

previous

sponsorships.

1,500 2 3,000 3,000 3,000 3,000

How to Do Business

in the Pacific Rim in

California: Venue and

materials

Cost based on

previous budgets

for event.

6,500 1 6,500 6,500 5,000 3,000 6,500 5,000 3,000 6,500 5,000 3,000

Global Policy

Summit in CA

(location to change

annually), October:

Portion of costs for

International

component of event

Cost based on

previous budgets

for event.

600 1 600 10,000 600 10,000 600 10,000 600

Export 101 in

California: Cost of

workshop

DHL 3,000 3 9,000 9,000 9,000 9,000

Export Tech

Workshop in

Southern CA: Cost of

workshop

CMTC 5,000 2 10,000 10,000 10,000 10,000

City of West

Sacramento Services:

To be provided

annually.

Cost based on

attachment

provided by City

of West

Sacramento.

6,500 1 6,500 6,500 6,500 6,500

Manex Services: To

be provided annually

Cost based on

attachment

provided by

Manex.

1,545 1 1,545 1,545 1,545 1,545

Development of

eCommerce

Platform: To be built

out and maintained by

Tao Networks.

Cost based on

estimation

provided by Tao

Networks.

### 1 23,200 23,200 3,500 5,000 5,000

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

Food Week Korea in

Seoul, South Korea,

November: Booth Fees

for Trade Show

Participating

Companies

3,100 2 6,200 6,200

Food Week Korea in

Seoul, South Korea,

November: Income

from Trade Mission

Fee paid by

participating

companies

1,090 17 18,530 18,530

Seoul Food & Hotel

Show in Seoul, South

Korea, May: Booth

Fees for Trade Show

Participating

Companies

3,100 2 6,200 6,200 6,200

Seoul Food & Hotel

Show in Seoul, South

Korea, May: Income

from Trade Mission

Fee paid by

participating

companies

1,090 17 18,530 18,530 18,530

a b c=ab

Fee Pag

es

Total

Translate U.S. firms'

marketing materials

to Korean. 20 firms, 3

pages each.

Fee based on

previous rates

provided by

Carmazzi Global

Solutions.

38 60 2,280 2,280 2,280 2,280

Design U.S. firms'

product booklets.

Design to include

creation of layout and

any necessary

revisions.

To be done by

Sacramento

Asian Pacific

Chamber of

Commerce.

Price estimated

at $50/hour for

total of 80 hours

4,000 1 4,000 4,000 4,000 4,000

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

Explanation & Calculation

Fed

Share

Pgm

Inc Other

In-

Kind

Fed

Share Pgm Inc Other

In-

Kind

Fed

Share

Pgm

Inc Other

In-

Kind

Printing translated

poduct booklets: 60-

page (front/back)

booklets, glossy paper

in full color.

Price paid for

similar job at

Monarch

printing in

Sacramento, CA

per booklet. 100

copies.

6.50 100 650 650 650 650

TOTAL 41,830 33,530 4,600 33,545 18,630 33,530 4,600 35,045 18,630 33,530 4,600 35,045

a b c=ab

Other Fee Par

tici

pan

ts

Total

TOTAL 0 0 0 0 0 0 0 0 0 0 0 0

Travel (dom) 15,365 0 1,485 0 15,365 0 1,485 0 15,365 0 1,485 0

Travel (int'l) 6,842 37,570 0 0 6,842 37,570 0 0 6,842 37,570 0 0

Equipment 0 0 0 0 0 0 0 0 0 0 0 0

Supplies 3,400 0 0 0 400 0 0 0 400 0 0 0

Contractual 41,830 33,530 4,600 33,545 18,630 33,530 4,600 35,045 18,630 33,530 4,600 35,045

Other 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 67,437 71,100 6,085 33,545 41,237 71,100 6,085 35,045 41,237 71,100 6,085 35,045

CAPCCCalifornia Asian Pacific Chamber of Commerce

1st Year 2nd Year 3rd Year

Non-Fed Share Non-Fed Share Non-Fed Share

Cash Cash Cash

# Explanation & Calculation

Fed

Share

Pgm

Inc Other In-Kind

Fed

Share

Pgm

Inc Other In-Kind

Fed

Share

Pgm

Inc Other In-Kind

Salary calculation Ann. Increase

a b c=ab e=cd

Personnel domestic

% of

time Ann Sal.

Allocated

Salary pct Amount

1 Korea Direct

Program

Manager

Strategic planning,

general oversight,

member relations,

trade missions

*[ 100% 0% ] 0%

2 President &

CEO

Strategic planning,

general oversight,

personnel decisions,

member relations,

trade missions

*[ 10% 0% ] 0%

3 Director of

Global

Initiatives

Coordinates CalAsian

Chamber effort for

Korea Direct. Includes

planning, event

preparation, etc.

*[ 50% 0% ] 0%

4 Global

Initiatives

Coordinator

Coordinates CalAsian

Chamber effort for

Korea Direct. Includes

planning, event

preparation, etc.

*[ 10% 0% ] 100%

5 Operations

Manager

General administrative

support related to

project.

*[ 10% 0% ] 100%

Domestic 50,000 0 63,000 0 50,000 0 63,000 0 50,000 0 63,000 0

International 0 0 0 0 0 0 0 0 0 0 0 0

Total 50,000 0 63,000 0 50,000 0 63,000 0 50,000 0 63,000 0

d

Personnel Expenses

This page contains proprietary information, identified between brackets [], the release of which would cause competitive harm to the California Asian Pacific Chamber of Commerce.

CAPCCCalifornia Asian Pacific Chamber of Commerce

Budget for Project Award PeriodWith Breakdown of Projected Funding Sources

Total Expenses for All Years 1st Year 2nd Year 3rd Year

Categories Non-Fed Share Non-Fed Share Non-Fed Share Non-Fed Shareyour organization's Cash from: your organization's Cash from: your organization's Cash from: your organization's Cash from:

Fed

Share

Pgm

Income Other In-Kind

Fed

Share

Pgm

Income Other In-Kind

Fed

Share

Pgm

Income Other In-Kind

Fed

Share

Pgm

Income Other In-Kind

DIRECT EXPENSES a b c d e f g h i j k l m n o p

PERSONNEL

1 Domestic 150,000 0 189,000 0 50,000 0 63,000 0 50,000 0 63,000 0 50,000 0 63,000 0

2 International 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3 TOTAL 150,000 0 189,000 0 50,000 0 63,000 0 50,000 0 63,000 0 50,000 0 63,000 0

FRINGE BENEFITS

4 Dom. Rate = 14.0% 0 0 26,460 0 0 0 8,820 0 0 0 8,820 0 0 0 8,820 0

5 Int'l. Rate = 0.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 TOTAL 0 0 26,460 0 0 0 8,820 0 0 0 8,820 0 0 0 8,820 0

TRAVEL

7 Domestic 46,095 0 4,455 0 15,365 0 1,485 0 15,365 0 1,485 0 15,365 0 1,485 0

8 International 20,526 112,710 0 0 6,842 37,570 0 0 6,842 37,570 0 0 6,842 37,570 0 0

9 TOTAL 66,621 112,710 4,455 0 22,207 37,570 1,485 0 22,207 37,570 1,485 0 22,207 37,570 1,485 0

10 EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

11 SUPPLIES 4,200 0 0 0 3,400 0 0 0 400 0 0 0 400 0 0 0

`

12 CONTRACTUAL 79,090 100,590 13,800 103,635 41,830 33,530 4,600 33,545 18,630 33,530 4,600 35,045 18,630 33,530 4,600 35,045

13 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL DIRECT

14 Sum from above 299,911 213,300 233,715 103,635 117,437 71,100 77,905 33,545 91,237 71,100 77,905 35,045 91,237 71,100 77,905 35,045

15 Sum all direct columns Sum line 16 columns a, b, c, d 850,561 Sum line 16 columns e, f, g, h 299,987 Sum line 16 columns i, j, k, l 275,287 Sum line 16 columns m, n, o, p 275,287

INDIRECT EXPENSES a b c d e f g h i j k l m n o p

16 Indirect Rate =10.0% 85,057 29,999 27,529 27,529

17 % of Total (line 20) 9.1% 9.1% 10.3% 9.1%

TOTAL a b c d e f g h i j k l m n o p

18 Dir.+Indir. 299,911 213,300 318,772 103,635 117,437 71,100 107,904 33,545 91,237 71,100 105,434 35,045 91,237 71,100 105,434 35,045

19 % of Total (line 20) 32.1% 22.8% 34.1% 11.1%

All Expense Columns

20 Total Sum line 16 columns a, b, c, d 935,618 Sum line 16 columns e, f, g, h 329,986 Sum line 16 columns i, j, k, l 302,816 Sum line 16 columns m, n, o, p 302,816

2016.03.15 01:19 PM

OMB Number: 4040-0004Expiration Date: 8/31/2016

* 1. Type of Submission: * 2. Type of Application:

* 3. Date Received: 4. Applicant Identifier:

5a. Federal Entity Identifier: 5b. Federal Award Identifier:

6. Date Received by State: 7. State Application Identifier:

* a. Legal Name:

* b. Employer/Taxpayer Identification Number (EIN/TIN): * c. Organizational DUNS:

* Street1:

Street2:

* City:

County/Parish:

* State:

Province:

* Country:

* Zip / Postal Code:

Department Name: Division Name:

Prefix: * First Name:

Middle Name:

* Last Name:

Suffix:

Title:

Organizational Affiliation:

* Telephone Number: Fax Number:

* Email:

* If Revision, select appropriate letter(s):

* Other (Specify):

State Use Only:

8. APPLICANT INFORMATION:

d. Address:

e. Organizational Unit:

f. Name and contact information of person to be contacted on matters involving this application:

Application for Federal Assistance SF-424

Preapplication

Application

Changed/Corrected Application

New

Continuation

Revision

03/15/2016

California Asian Pacific Chamber of Commerce

38-3737264 9621979970000

2012 H Street, Suite 101

Sacramento

CA: California

USA: UNITED STATES

95811-3100

Mrs. Pat

Fong Kushida

President & CEO

(916)446-7883 (916)446-7098

patfongkushida@calasiancc.org

* 9. Type of Applicant 1: Select Applicant Type:

Type of Applicant 2: Select Applicant Type:

Type of Applicant 3: Select Applicant Type:

* Other (specify):

* 10. Name of Federal Agency:

11. Catalog of Federal Domestic Assistance Number:

CFDA Title:

* 12. Funding Opportunity Number:

* Title:

13. Competition Identification Number:

Title:

14. Areas Affected by Project (Cities, Counties, States, etc.):

* 15. Descriptive Title of Applicant's Project:

Attach supporting documents as specified in agency instructions.

Application for Federal Assistance SF-424

X: Other (specify)

Nonprofit 501c6 w/ 501c3

Department of Commerce

11.112

Market Development Cooperator Program

ITA-INA-OPCM-2016-2004724

Market Development Cooperator Program 2016

2563054

Korea Direct

View AttachmentsDelete AttachmentsAdd Attachments

View AttachmentDelete AttachmentAdd Attachment

* a. Federal

* b. Applicant

* c. State

* d. Local

* e. Other

* f. Program Income

* g. TOTAL

.

Prefix: * First Name:

Middle Name:

* Last Name:

Suffix:

* Title:

* Telephone Number:

* Email:

Fax Number:

* Signature of Authorized Representative: * Date Signed:

18. Estimated Funding ($):

21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statementsherein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree tocomply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims maysubject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001)

** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agencyspecific instructions.

Authorized Representative:

Application for Federal Assistance SF-424

* a. Applicant

Attach an additional list of Program/Project Congressional Districts if needed.

* b. Program/Project

* a. Start Date: * b. End Date:

16. Congressional Districts Of:

17. Proposed Project:

a. This application was made available to the State under the Executive Order 12372 Process for review on

b. Program is subject to E.O. 12372 but has not been selected by the State for review.

c. Program is not covered by E.O. 12372.

Yes No

** I AGREE

* 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.)

* 19. Is Application Subject to Review By State Under Executive Order 12372 Process?

If "Yes", provide explanation and attach

CA-006 A11

Add Attachment Delete Attachment View Attachment

09/30/201910/01/2016

299,911.00

635,707.00

0.00

0.00

0.00

0.00

935,618.00

Add Attachment Delete Attachment View Attachment

Mr. Ryan

Fong

Operations Manager

(916)446-7883 (916)446-7098

rfong@calasiancc.org

Pat Fong Kushida 03/15/2016

SECTION A - BUDGET SUMMARY

$

BUDGET INFORMATION - Non-Construction Programs OMB Number: 4040-0006Expiration Date: 01/31/2019

Grant Program Function or

Activity

(a)

Catalog of Federal Domestic Assistance

Number(b)

Estimated Unobligated Funds New or Revised Budget

Federal(c)

Non-Federal(d)

Federal(e)

Non-Federal(f)

Total(g)

5. Totals

4.

3.

2.

1. $ $ $ $

$$$$$

Standard Form 424A (Rev. 7- 97)Prescribed by OMB (Circular A -102) Page 1

MDCP 11.112 299,911.00 635,707.00 935,618.00

299,911.00 635,707.00 935,618.00

SECTION B - BUDGET CATEGORIES

7. Program Income

d. Equipment

e. Supplies

f. Contractual

g. Construction

h. Other

j. Indirect Charges

k. TOTALS (sum of 6i and 6j)

i. Total Direct Charges (sum of 6a-6h)

(1)

Authorized for Local ReproductionPrescribed by OMB (Circular A -102) Page 1A

Standard Form 424A (Rev. 7- 97)

GRANT PROGRAM, FUNCTION OR ACTIVITY(2) (3) (4) (5)

Total6. Object Class Categories

a. Personnel

b. Fringe Benefits

c. Travel

$$$$$

$$$$$

$$$$$

$

$

MDCP

150,000.00

0.00

66,621.00

0.00

4,200.00

79,090.00

0.00

299,911.00

299,911.00

N/A

189,000.00

26,460.00

117,165.00

0.00

0.00

218,025.00

0.00

550,650.00

85,057.00

635,707.00

339,000.00

26,460.00

183,786.00

4,200.00

297,115.00

850,561.00

85,057.00

935,618.00

SECTION D - FORECASTED CASH NEEDS

14. Non-Federal

SECTION C - NON-FEDERAL RESOURCES(a) Grant Program (b) Applicant (d) Other Sources(c) State (e)TOTALS

$

$

$ $ $

$

$

$

$

$8.

9.

10.

11.

12. TOTAL (sum of lines 8-11)

15. TOTAL (sum of lines 13 and 14)

13. Federal

Total for 1st Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

$ $

$ $ $

$ $ $ $

FUTURE FUNDING PERIODS (YEARS)

SECTION F - OTHER BUDGET INFORMATION

SECTION E - BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF THE PROJECT

Authorized for Local Reproduction

$

$

$ $

$

$16.

17.

18.

19.

20. TOTAL (sum of lines 16 - 19)

21. Direct Charges: 22. Indirect Charges:

23. Remarks:

(a) Grant Program (b)First (c) Second (d) Third (e) Fourth

$ $

Standard Form 424A (Rev. 7- 97)Prescribed by OMB (Circular A -102) Page 2

MDCP635,707.00 0.00 0.00 635,707.00

635,707.00 635,707.00

MDCP

Applied to total direct charges: 10.00%Domestic fringe benefits: 14.00%

Foreign fringe benefits: 0.00%

1.

OMB Number: 4040-0007 Expiration Date: 01/31/2019

ASSURANCES - NON-CONSTRUCTION PROGRAMS

Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0040), Washington, DC 20503.

PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SENDIT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.

NOTE: Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the awarding agency. Further, certain Federal awarding agencies may require applicants to certify to additional assurances. If such is the case, you will be notified.

As the duly authorized representative of the applicant, I certify that the applicant:

Has the legal authority to apply for Federal assistance and the institutional, managerial and financial capability (including funds sufficient to pay the non-Federal share of project cost) to ensure proper planning, management and completion of the project described in this application.

Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290 dd-3 and 290 ee- 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and, (j) the requirements of any other nondiscrimination statute(s) which may apply to the application.

2. Will give the awarding agency, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives.

3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.

4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency.

5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed standards for merit systems for programs funded underone of the 19 statutes or regulations specified inAppendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F).

6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C.§§1681- 1683, and 1685-1686), which prohibits discrimination onthe basis of sex; (c) Section 504 of the Rehabilitation

Previous Edition Usable Standard Form 424B (Rev. 7-97)Prescribed by OMB Circular A-102Authorized for Local Reproduction

7. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally-assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases.

8. Will comply, as applicable, with provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

Standard Form 424B (Rev. 7-97) Back

9.

12.

Will comply, as applicable, with the provisions of the Davis- Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327- 333), regarding labor standards for federally-assisted construction subagreements.

Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more.

11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of Federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93- 205).

13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593(identification and protection of historic properties), and the Archaeological and Historic Preservation Act of1974 (16 U.S.C. §§469a-1 et seq.).

14. Will comply with P.L. 93-348 regarding the protection of human subjects involved in research, development, and related activities supported by this award of assistance.

15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals held for research, teaching, or other activities supported by this award of assistance.

16. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations."

18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, and policies governing this program.

SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE

DATE SUBMITTEDAPPLICANT ORGANIZATION

Will comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. 7104) which prohibits grant award recipients or a sub-recipient from (1) Engaging in severe forms of trafficking in persons during the period of time that the award is in effect (2) Procuring a commercial sex act during the period of time that the award is in effect or (3) Using forced labor in the performance of the award or subawards under the award.

19.

Operations Manager

California Asian Pacific Chamber of Commerce

Pat Fong Kushida

03/15/2016

CERTIFICATION REGARDING LOBBYING

FORM CD-511(REV 1-05)

U.S. DEPARTMENT OF COMMERCE

Applicants should also review the instructions for certification included in the regulations before completing this form. Signature on this form provides for compliance with certification requirements under 15 CFR Part 28, 'New Restrictions on Lobbying.' The certifications shall be treated as a material representation of fact upon which reliance will be placed when the Department of Commerce determines to award the covered transaction, grant, or cooperative agreement.

LOBBYING

As required by Section 1352, Title 31 of the U.S. Code, and implemented at 15 CFR Part 28, for persons entering into a grant, cooperative agreement or contract over $100,000 or a loan or loan guarantee over $150,000 as defined at 15 CFR Part 28, Sections 28.105 and 28.110, the applicant certifies that to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection withthis Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, 'Disclosure Form to Report Lobbying.' in accordance with its instructions.

(3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify anddisclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into thistransaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure occurring on or before October 23, 1996, and of not less than $11,000 and not more than $110,000 for each such failure occurring after October 23, 1996.

Statement for Loan Guarantees and Loan Insurance

The undersigned states, to the best of his or her knowledge and belief, that:

In any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this commitment providing for the United States to insure or guarantee a loan, the undersigned shall complete and submit Standard Form-LLL, 'Disclosure Form to Report Lobbying,' in accordance with its instructions.

Submission of this statement is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any personwho fails to file the required statement shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure occurring on or before October 23, 1996, and of not less than $11,000 and not more than $110,000 for each such failure occurring after October 23, 1996.

As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above applicable certification.

* NAME OF APPLICANT

* AWARD NUMBER * PROJECT NAME

Prefix: * First Name: Middle Name:

* Last Name: Suffix:

* Title:

* SIGNATURE: * DATE:

Pat Fong Kushida 03/15/2016

California Asian Pacific Chamber of Commerce

11.112 Market Development Cooperator Program

Mr. Ryan

Fong

Operations Manager